The Minister welcomes the regulatory announcement by Permanent TSB confirming that the Minister for Finance has today acquired Irish Life Limited (“Irish Life”) for €1.3bn to complete the recapitalisation required as directed by the Central Bank on 31 March 2011 as part of PCAR 2011 satisfying commitments made to the External Partners.
The Minister for Finance has now acquired a 100 per cent direct shareholding in Irish Life and its subsidiary companies.
The Minister issued the following comment in response:
“I am pleased that, having successfully defended a legal challenge in relation to the Direction Order granted by the High Court on 28 March 2012, the acquisition of Irish Life can now be concluded. This transaction represents the completion of the recapitalisation of Irish Life & Permanent PLC (“ILP”) allowing the bank to focus now on the successful implementation of its proposed strategy. Irish Life is a valuable asset and we will allow it to operate as a commercial entity with the clear objective of maximising the proceeds for the State on an eventual sale when market conditions allow.
I am conscious that there are two legal challenges which remain in being in relation to a separate Direction Order which was made by the High Court on 26 July 2011 with regard to the injection of capital by me of €2.7 billion into Irish Life & Permanent Group Holdings plc and ILP and I confirm that these challenges will continue to be defended in full.”
Note to editors
PCAR 2011 required ILP to raise €4bn of additional capital. The Minister invested €2.3bn in ordinary shares in July 2011 bringing his total shareholding in ILPGH to 99.2%. An additional €0.4bn was also invested by way of a Contingent Capital Note.